Home Consortium (HomeCo) has added six retail investments to its Daily Needs Trust (HDN), which floated last November.
Two of the properties – in New South Wales’ North Coast – are being purchased from the parent.
Three of the assets are in Victoria.
All up the spend is $222 million struck on a core capitalisation rate of 5.78 per cent.
To fund it, HomeCo will embark on an $88.3m capital raising.
Upon settlement, HDN will hold assets worth $1.786 billion containing 409,161 square metres of gross lettable area
The portfolio vacancy rate will be unchanged at 99.3pc while its Weighted Average Lease Expiry will decrease slightly to 7.5 years.
Growth corridors and regions
The priciest property, the Pakenham Lifestyle Centre, in a south east Melbourne growth corridor – is costing $98.5m from private interests.
Spreading 7.6 hectares at 825 Princes Highway, it contains 30,716 square metres of lettable area and over 600 car parks.
The biggest occupiers are Amart Furniture, The Good Guys and Snooze; the WALE is 5.3 years.
The deal is being struck at six pc cap rate.
Across town in Aintree, also a growth corridor, HomeCo is paying $55.4m for the Woodlea Town Centre (pictured, top), which opened in March.
On 2.73ha, it contains an 8582 sqm complex anchored to Coles which, with options, can stay until 2066.
The purchase, from Mirvac and Victoria Investments and Properties, is being struck at a 5.25pc cap rate (story continues below).
Elsewhere in Victoria, HDN has picked up a retail asset beside the Armstrong Creek Shopping Centre, which it purchased in April.
Covering 1.09ha, leased to Dan Murphy’s, Hungry Jacks and KFC, the purchase price of $21.5m reflects a five pc cap rate.
In Queensland, the fund is paying $7m for an “under-utilised” fast food restaurant on a 4050 sqm pad site neighbouring HomeCo Upper Cooomera, opposite HomeCo Coomera City.
This purchase reflects the tightest return – 3.86pc.
Hungry Jack’s is the tenant.
The two properties HDN is acquiring from the parent include HomeCo Coffs Harbour, which is costing $22.4m, and HomeCo Lismore ($17.2m).
The combined value of these two investments reflects a 16.8pc – or $8m – discount to the draft September, 2021 valuations.
Low site coverage
HomeCo acquired the six properties off-market.
Eighty pc of occupiers, it said, are national tenants.
The combined low site coverage (34.4pc) provides add-value potential, it added.
Last week, the manager listed its third trust – the HealthCo Healthcare & Wellness REIT – which closed today at $2.32, a 16pc premium to its offer price.
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